SB-0900, As Passed Senate, June 12, 2014

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 900

     A bill to amend 1969 PA 317, entitled

"Worker's disability compensation act of 1969,"

by amending sections 352 and 391 (MCL 418.352 and 418.391), as

amended by 2007 PA 190.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 352. (1) An employee receiving or entitled to receive

benefits equal to the maximum payable to that employee under

section 351 or the dependent of a deceased employee receiving or

entitled to receive benefits under section 321 whose benefits are

based on a date of personal injury between September 1, 1965, and

December 31, 1979, shall be is entitled to a supplement to weekly

compensation. The supplement shall be computed using the total

annual percentage change in the state average weekly wage, rounded

to the nearest 1/10 of 1%, as determined under section 355. The

supplement shall be computed as a percentage of the weekly

compensation rate that the employee or the dependent of a deceased

employee is receiving or is entitled to receive on January 1, 1982

had the employee been receiving benefits at that time, rounded to

the nearest dollar. The supplement shall not exceed 5% compounded

for each calendar year in the adjustment period. The percentage

change for purposes of the adjustment shall be computed from the

base year through December 31, 1981. A supplement shall not be paid

retroactively for any period of disability before January 1, 1982.

     (2) For personal injuries occurring from September 1, 1965,

through December 31, 1968, the base year shall be 1968. For

personal injuries occurring between January 1, 1969 and December

31, 1979, the base year shall be the year in which the personal

injury occurred.

     (3) Pursuant to subsection (1), the director shall announce on

December 1, 1981, the supplement percentages payable on January 1,

1982.

     (4) All personal injuries found compensable under this act

after January 1, 1982 with a personal injury date before January 1,

1980, shall be paid at a rate determined pursuant to this section.

     (5) An employee who is eligible to receive differential

benefits from the second injury fund shall be paid the supplement

pursuant to this section as reduced by the amount of the

differential payments being made to the employee by the second

injury fund at the time of the payment of the supplement pursuant

to this section.

     (6) The supplement paid pursuant to this section, when added

to the original benefit, shall not exceed the maximum weekly rate

of compensation provided in section 355 in effect on the date of

the adjustment.

     (7) An employee is not entitled to supplements under this

section for a personal injury for which the liability has been

redeemed.

     (8) The supplements under this section shall be paid by an

insurer or self-insurer on a weekly basis. The insurer, self-

insurer, the second injury fund, and the self-insurers' security

fund are entitled to quarterly reimbursement for these payments

from the compensation supplement fund in section 391, except that

an insurer or self-insurer subject to section 440a of the insurance

code of 1956, 1956 PA 218, MCL 500.440a, section 38b of the single

business tax act, former 1975 PA 228, MCL 208.38b, or, for periods

prior to January 1, 2012, section 423 of the Michigan business tax

act, 2007 PA 36, MCL 208.1423, shall take a credit under either

section 440a of the insurance code of 1956, 1956 PA 218, MCL

500.440a, section 38b of the single business tax act, former 1975

PA 228, MCL 208.38b, or, for periods prior to January 1, 2012,

section 423 of the Michigan business tax act, 2007 PA 36, MCL

208.1423, as applicable.

     (9) This section does not apply to an employee receiving

benefits under section 361(1).

     (10) An insurer, self-insurer, the second injury fund, or the

self-insurers' security fund shall make the supplemental payments

required by this section for each quarter of the state's fiscal

year that the state treasurer certifies that there are sufficient

funds available to meet the obligations of the fund created in

section 391 for that quarter. The state treasurer shall certify

whether there are sufficient funds in the fund created in section

391 to meet the obligations of that fund for each quarter of the

fiscal year of the this state on or before the first day of each

quarter.

     (11) An insurer, self-insurer, the second injury fund, or the

self-insurers' security fund shall make the supplemental payments

required by this section for the period July 1, 1982 to September

30, 1982 and shall be reimbursed for those payments.

     Sec. 391. (1) The compensation supplement fund is created as a

separate fund in the state treasury. The fund shall be administered

by the state treasurer pursuant to this section. The legislature

shall appropriate to the compensation supplement fund from the

general fund the amounts necessary to meet the obligations of the

compensation supplement fund under section 352, and the

administrative costs incurred by the bureau under this section.

     (2) The director shall promulgate rules under the

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

24.328, that prescribe the conditions under which the money in the

compensation supplement fund shall be expended pursuant to section

352 and this section.

     (3) The department of treasury shall cause to be paid from the

compensation supplement fund those amounts and at those times as

are prescribed by the director pursuant to subsection (2).

     (4) The director may employ the personnel the director

considers necessary for the proper administration of the

compensation supplement fund.

     (5) The director shall annually recommend to the governor and

the chairpersons of the senate and house appropriations committees

the amount of money the director considers necessary to implement

and enforce this section and section 352 during the ensuing fiscal

year. The compensation supplement fund may carry forward into a

subsequent fiscal year any unexpended funds, and reduce the

necessary appropriation by the amount of the unobligated balance in

the fund.

     (6) Not later than April 1 of each year the director shall

submit a report to the governor and the legislature summarizing the

transactions of the compensation supplement fund during the

preceding calendar year. The report shall identify each insurer and

self-insurer that receives a reimbursement payment from the

compensation supplement fund and the amount of reimbursement. When

all liabilities of the compensation supplement fund for

reimbursements required pursuant to section 352 are paid, the

director shall recommend to the governor and the legislature that

the compensation supplement fund be abolished. The director shall

certify to the department of treasury and the commissioner of

insurance the identity of each insurer and self-insurer that claims

a credit as provided for under section 352(8) and the amount of

each supplemental payment under section 352 paid by that insurer or

self-insurer to which the credit applies.

     (7) Pursuant to section 352, insurers and self-insurers not

subject to either section 440a of the insurance code of 1956, 1956

PA 218, MCL 500.440a, section 38b of the single business tax act,

former 1975 PA 228, MCL 208.38b, or, for periods prior to January

1, 2012, section 423 of the Michigan business tax act, 2007 PA 36,

MCL 208.1423; , the second injury fund; , and the self-insurers'

security fund; and the private employer group self-insurers

security fund are entitled to reimbursement from the compensation

supplement fund. An application for reimbursement shall be on the

forms and contain information as required by the director.

Application Except as otherwise authorized by the director,

application for a claim for reimbursement from the compensation

supplement fund shall be filed with the director within 3 months

after the date on which the right to reimbursement first accrues.

After the insurer, self-insurer, the second injury fund, or the

self-insurers' security fund, or the private employer group self-

insurers security fund has established a right to reimbursement,

payment from the compensation supplement fund shall be made without

interest on a proper showing every quarter. A Except as otherwise

authorized by the director, a reimbursement shall not be allowed

for a period that is more than 1 year before the date of the filing

of the application for reimbursement pursuant to this section. A

reimbursement shall not be allowed for payments made under section

352 for which an insurer or self-insurer takes a credit as provided

for in section 352(8).